Canada’s Trade Deficit Widens as Auto Trade Weakens (1)

Canada’s trade deficit widened in January as exports of motor vehicles and parts fell to the lowest level in more than four years.

Canadian goods exports decreased by 4.7%, the biggest monthly decline since April 2025, Statistics Canada reported Thursday. That pushed the country’s trade shortfall to C$3.65 billion.

Economists surveyed by Bloomberg were expecting Canada’s trade deficit to shrink to C$1.1 billion in January from C$1.3 billion in December.

The decrease in Canadian exports was driven by a sharp decline in vehicle and parts shipments, which fell by 21% to C$5.4 billion, the lowest level since September 2021.

Exports ...